Independent Agencies Sales Alerts – January 2016 Edition

Welcome to the first edition of your Insurance Agent Sales Alerts for 2016. We want to also congratulate those of you that contributed to the record breaking insurance agency M&A activity year in 2015! We were privileged to work with so many passionate and driven agency sellers and buyers this past year and look forward to supporting more agency owners grow their business in the months ahead.

As hard as it is to imagine, the end of 2016 will be here before we know it. As 2015 drifts into history, the memory of a number of potential buyers contacting Springtree Group in November and December wanting to close a deal “before the end of the year” was noteworthy. We unfortunately needed to advise clients that, in most cases, there simply is not enough time to professionally complete a process that is so complex.

The development work for most transactions typically takes a few months from inception to closing. If buying an agency is in your business plan for 2016, we recommend that you seriously consider starting the procurement process now in order to complete your acquisition during this calendar year.

The listings below are samples of some of the new or repriced independents discovered through our research or provided to us during the last 30 days. Upon request we will provide our clients access to previous month’s and off cycle listings.

SHOP B: Baton Rouge, LA — A nine-year-old independent Life, Annuity, LTC and Trust business is now for sale. The book is made up of 1000 clients and has $25M going into surrender. The sales focus had been estate planning so there is a large cross selling opportunity into Annuities and Life Insurance. Primary markets are Athene, American Equity and National Western. Asking Price $145K / Estimated Annual Revenue $125K.

SHOP C: South Texas — Major Price reduction.A thirty-five-year old Horace Mann book of business is now on the market. This book is made up of 80% home/auto and 20% annuity/life. Seller is producing $80K-$90K in commissions with $45K of that being in renewals. Seller has $1.7M assets under management on the life and annuity side. Owner is willing to stay on for 1 month and will sign a 2 year non-compete. Asking Price $80K / Reported Revenue $85K.

SHOP F: Garland, Texas — An established independent non-standard agency. Agency has long term customers and is looking for the right buyer to step in and provide direct leadership and a vision to grow. Carriers include Aggressive, ACCC, CAIC and others. Currently 80% auto and 20% home. The agency uses I-Pro policy management systems. Asking $TBDK / Reported Revenue $88K.

SHOP G: Southern New Mexico — A very well established independent insurance agency is now for sale. This agency is predominantly (65%) Personal Lines and (40%) preferred commercial. Reported Revenue $785K / Asking Price $975K.

Being associated with STG provides you access to the strongest array of insurance related M&A services, agency lending tools and financial services available to support your acquisition, perpetuation and operational needs in any part of North America. Please call our office at (972) 395-8811 or contact us online for additional information on services and opportunities.